Last week’s CFTC hearing into precious metals manipulation (as opposed to the more sanitized description, “position limits” so widely headlined in mainstream media) was amazing. I am amazed not only that the hearing happened, but more importantly for what once more got confirmed as truth. Rats HATE bright lights shining on them. It’s now obvious why no cartel apologist will debate ANYBODY with GATA. Their thin veneer of pompous credibility withers under a blistering assault of truth. Worse yet, as in Jeffrey Christian’s case, he accidentally blunders into confirming GATA’s basic tenets. The horror! Jon Nadler and Phil Klapwijk must have shuttered watching their befuddled and idiotic colleague Mr. Christian stink up the joint. Can you imagine how imbecilic Nadler would have looked trying to defend his lunatic beliefs at the CFTC hearings? I’m sure the CFTC thought they had a WWE-style controlled hearing set up. What they got instead were 2 or 3 cage fighters from the UFC (Ultimate Fighting Championship). They were thunderstruck by something that they didn’t plan on happening. The script got tore up for a while. Later Bill Murphy and Adrian Douglas dropped off a couple black swans to the CFTC. Now it’s out there for all to see in the blogosphere, and you can bet there’s smart money paying attention. The decade long media blackout on GATA and Bill Murphy proved (for TPTB) to be for good reason: nobody can refute GATA’s evidence, and you’ll look silly trying.

The profundity of what was revealed at the hearings still reverberates in my head. In spite of all the mountains of OTC’s, ETF’s, LBMA turnover, Comex rigging, and massive JPM derivatives gold still rose 450% the past decade. Think of it! Even our wildest estimates for gold’s price targets may be vastly underestimating the massive fractional reserve suppression scheme. Adrian may have blown the doors wide open as to the enormity of it in totality. What exactly are the collective fractional claims worldwide to physical gold? With such massive secrecy in all reporting it could be thousands to one! What if even 10% decide to ask for the real thing?

The Comex 2% rule stands as a sentinel guarding the hundreds of thousands of claims for the real thing. Keeping as many slumbering investors as possible from waking up is the whole reason for the 2% rule. Thanks to Adrian and Bill we now have a bigger perspective for what is at stake if they ever do. Jeffrey Christian in self-contradictory fashion claimed Comex rigging isn’t a big deal. It is in fact THE deal that can merely take down paper OTC gold if left unguarded. The LBMA market would go into a tizzy if Comex gold was ever limit-up bid, with the next offer an additional limit-up. I am confident the cartel will enforce the 2% rule until “death do them part”. Pleasant thought, and, as they say over at Zero Hedge, “on a long enough timeline, the survival rate for everyone (and everything -ed.) drops to zero”.

Andy Maguire’s testimony also gives us a glimpse into the genius traders that seemingly never fail at JPM and Goldman Sachs. Imagine having that kind of rigging immunity in virtually any trading operation and you quickly understand how invincibility occurs.

Like in my previous essay, ‘L ’Ecran Magique it’s as if they have little magic Etch A Sketch screens to create whatever profits they desire. This bombshell testimony is the tip of the iceberg for how massive derivative manipulations have defrauded millions of people worldwide. My sincerest wishes are for the safety of him and his family. I suggest everybody reading this do at least one thing immediately. Make these You Tube clips of Bill, Adrian, and Andy Maguire go viral on the internet. Send them to everybody, and ask them to forward them on to as many people as possible.

Alain Despert’s GATA painting gets more prescient by the day. Certainly this past Thursday a bright light showed up in Washington with a GATA army close behind. Like the painting, how many GATA soldiers are not visible to the cartel? Scurry my good rats, and regroup to some dark corner. But don’t take your remaining darkness for granted. Once the whole room gets illuminated the rodent eradication can begin in earnest.

James McShirley

April 1st, 2010